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The Story Is with Elex Michaelson

Trump Levies New Tariffs on Trading Partners; Confrontations Between Philippines and China Over Scarborough Shoal; Trump Adds Condition to Nuclear Deal with Saudi Arabia; U.S., Canada Work Together in Alaska Despite Trump Rhetoric; U.S. FDA Advisory Group Mulls Easing Restrictions on Peptides; Cuban Dissident Speaks Out about Life in His Homeland. Aired 12-1a ET

Aired July 24, 2026 - 00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ELEX MICHAELSON, CNN ANCHOR: I think it's time we go back to "Wasssuupppp?"

[00:00:06]

LAURA COATES, CNN ANCHOR: Oh, my God. I'm going to call you, like, "Wasssuupppp?" Remember that commercial?

MICHAELSON: Wasssuupppp? Yes.

COATES: Oh, my God.

MICHAELSON: What about you?

COATES: They are the Budweiser frogs, too. Are you kidding me? That just brought me back for a second. OK, what are mine? Put it up there. What did I say?

I wanted -- I wanted -- oh, "not going to hold you." I hate that phrase. Also, "cap," like someone's lying.

But the one I want to bring back is "What's the 411?" And I love Mary J. Blige, so it makes sense. But like, what's up? What's the 411?

It means nothing to my kids. Nothing at all.

Have a great show, Elex.

MICHAELSON: All right, Laura. Have a good night.

We start with breaking news on THE STORY IS.

ANNOUNCER: This is CNN breaking news.

MICHAELSON: Our breaking news, new tariffs. Right now, at this very moment, a new round is set to take effect, reigniting the trade war from President Trump.

This means that dozens of the U.S.'s trading partners are now being hit with levies of 10 to 12.5 percent on goods imported to the U.S. These new tariffs replace the temporary 10 percent global tariffs that are now expiring.

The White House says that President Trump is not going to allow his trade policy to be undermined by a court, referring to the Supreme Court, which includes a lot of people that President Trump appointed.

It's unclear if this so-called Plan C will survive, or if it will, too, be shut down by the Supreme Court, which ruled against the sweeping tariffs he imposed last year.

CNN's Mike Valerio is covering all this live from Beijing. We know that China's certainly impacted by all this.

Mike, walk us through what exactly these new tariffs are and who's going to be paying for them.

MIKE VALERIO, CNN INTERNATIONAL CORRESPONDENT: Well, I mean we're going to be paying for them. I think that's the biggest point at home. It's American importers. This is not China or other importers and nations that are paying for these tariffs. Exporter nations, I should say. It's us back home in the United States.

So, are we going to be paying more? Roughly the same, because as you said, these tariffs are replacing the emergency tariffs that the president put in place after the Supreme Court shut down his biggest tariff tool in his toolkit.

So, what exactly is happening here? These are tariffs between 10 and 12.5 percent that are replacing those 10 percent emergency tariffs that were put in place a couple of months ago.

And you'll hear in the headlines, as these tariffs become reality, that they are trying to safeguard against the importation of products that were made with forced labor.

But when we're talking about trade partners like Japan, South Korea, Australia that are being hit with these tariffs, you know, you might be thinking, well, Australia doesn't use forced labor. South Korea doesn't use forced labor. What's going on here?

The rationale from the trade representative and people who are working on this in Washington is that these nations, from their point of view, do not have protections strong enough, like American protections, to safeguard against products made by forced labor entering their country.

So, the rationale is, if you have country X, that's allowing a product made with forced labor into their market, that harms American producers, because the price of product X is coming way down. It's made with forced labor. So that's harming American producers, because they have to compete with these products that are made with forced labor, that are being sold at very low prices.

That's the justification that the United States is weighing. Not everybody is buying it, though. The Australian trade minister is saying in Adelaide this morning the imposition of higher tariffs on Australia, completely unjustified, Elex. "And we will continue to lobby the United States trade representative to remove all tariffs on Australian goods."

MICHAELSON: So, Mike, you're in China. We know the last time, there was the real back and forth. Some of the highest tariffs went to China. Does all this, what's happening right now, does this impact President Xi Jinping's September trip to the United States?

VALERIO: You know, it seems as though all systems are go. But the question we're working on this afternoon, and we're going to be asking at the Ministry of Foreign Affairs up the street later this afternoon, is does China retaliate, Elex?

And the consensus seems to be no, no retaliation now. But there could be a new tranche of tariffs leveled at China between now and that September visit that Xi Jinping is expected to make in Washington about, quote, unquote, "illegal dumping," about China sending all of these electric vehicles into markets around the world and other products in the United States, saying that's not fair. That harms businesses around the world.

So, if we have this today, the tariffs that are replacing the old tariffs, and we have new tariffs, we could see China retaliate. That is the open question. And whether or not that affects the trip, the mood of the trip. That's an open question.

[00:05:03]

But it still seems, from our contacts here, that this trip is going forward. And they're trying to smooth things over. We are expecting bumps in the road, but in terms of keeping that truce, both sides need to keep the trade truce.

MICHAELSON: Mike Valerio, starting us off with that breaking news in Beijing and showcasing CNN merch in the process. Nice mug. Thanks so much, Mike. Appreciate you.

The U.S. is extending its relentless campaign against Iran with no immediate end in sight. "The New York Times" reporting that Iran rejected a new U.S. ceasefire deal delivered by Iraq.

It's not clear what was actually in it, but it comes as the U.S. military says it completed a 13th straight night of airstrikes in Iran.

Iranian state media reports at least four people have been killed.

In public, President Trump is showing little appetite to return to the negotiating table. He said on Thursday that Iran is not ready to strike a deal, claiming its leaders have evil intentions.

Iran says any further attacks on its infrastructure will be met with a, quote, "severe and escalatory response."

The significant pressure on the White House to resolve the war. President Trump is planning to gather his cabinet at Camp David next week.

(BEGIN VIDEO CLIP)

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: And next Friday, the president will host the 13th cabinet meeting of this term, of this term at Camp David, which will be a lot of fun and something different for the cabinet to experience together.

(END VIDEO CLIP)

MICHAELSON: This will be the first cabinet meeting the president has held since May 27th, and it comes at a high-stakes moment for his presidency and the war with Iran.

The U.S. House passed a measure to limit President Trump's war powers on Thursday, with four Republicans siding with the Democrats. But the Senate failed to advance a similar measure.

The widening conflict in the Middle East is taking a toll on oil prices. Brent crude jumped more than 6 percent Thursday, hitting $100 a barrel before retreating.

There are growing fears about the world's oil supply after Houthi rebels in Yemen targeted Saudi tankers in the Red Sea.

Escalating oil prices and concerns about the new Fed chairman are affecting the bond markets, as well, pushing borrowing costs up for U.S. consumers. The ten-year U.S. Treasury yield rose four basis points to 4.71, its highest level since January 2025.

And the ten-year yield helps determine borrowing costs across the U.S. economy, including mortgage rates. The 30-year fixed mortgage rate climbed to 6.58 percent this week, which is the highest it's been since last August.

Now, to simmering tensions in the South China Sea. China has been acting on its long-held claims to nearly all of the critical body of water, and sending warning signs to ships from smaller neighboring countries.

The latest flashpoint is Scarborough Schwa (ph), a tiny atoll not far from the Philippines that is rich in marine resources. That's where our Ivan Watson is live right now -- Ivan.

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Hey, there, Elex. That's right. We're in the South China Sea. I'm aboard a Philippine government vessel. It is currently being shadowed by a Coast Guard ship from China, which is kind of a speck on the horizon here.

The situation a couple of hours ago was dramatically different. You had Chinese Coast Guard ships surrounding this ship, as well as several other ships from the Philippine Bureau of Fisheries and operating in very close proximity to the ship where I am right now.

I would say seven, ten yards away off the port bow and blasting it with water cannons repeatedly. It was tense at times. It looked like the Chinese ship might ram us, perhaps even accidentally. All told, it was -- it was a confrontation where the Chinese maritime

security forces were trying to prevent this, and several other Philippine government boats from a -- approaching Scarborough Shoal, one of several hot spots in the South China Sea that both China and the Philippines claim for themselves.

In the case of Scarborough, Chinese forces have basically controlled this uninhabited rock for the last couple of years, stopping Filipino fishermen, fisher folks, from being able to fish there, and rejecting a competing claim from the Philippines, where they claim to own it.

The fact of the matter is that China basically claims almost all of the South China Sea for itself, disregarding competing claims from the Philippines, Malaysia, Taiwan, Vietnam, Brunei.

And what we've seen out in this part of the -- this rare opportunity is how these two governments are engaged in a test of wills, where neither side is willing to back down. And they frequently have their ships and planes coming in very close contact.

[00:10:10]

There have been skirmishes that have led to damage to the ships, injuries to personnel, as well. And this is a bizarre scene that plays itself out over and over again, out in these contested waters, week after week.

And we got a very rare, up and close view of just how strange this is. Giant ships. According to the Philippines, at least 26 Philippine and Chinese ships out here in the last couple of hours in very close proximity, coming within yards of each other. Fortunately, nobody reported to be hurt.

But a strange maritime drama that plays itself out in these waters, week after week.

MICHAELSON: So, Ivan, was there any communication between the two ships? And how did -- how did it all end? I mean, we saw the video of the water cannons. You were there. I mean, what did all that feel like? How did everybody sort of leave each other?

WATSON: Sure. I mean, it's tense. And there is a lot of communication, which makes it all the more bizarre. The Philippine and Chinese crews are constantly communicating over radios to each other in English, sometimes in Mandarin.

And they're basically repeating their own claims, each side saying, we have the right to be here. You don't have the right. You're putting us in danger.

The Chinese saying, This is our territorial water. We control this island. You do not. You're not allowed to be here.

The Philippines, they're saying, This is part of our economic exclusive zone. We do have the right to be here. State your intention. So, there's a lot of back and forth going on. But at one point, the

Chinese Coast Guard ships, several points. I could have hit it with a rock from where I'm standing right now. I could see the Chinese personnel very clearly. They're taking pictures of me and the crew here. The crew here is taking pictures of them. The water cannon is blasting over here.

And at one point, even a Philippine Cessna propeller plane buzzed several times low overhead. So, it wasn't just ships. It was also aircraft involved.

The Chinese government has put out a statement saying that, quote, it took enforcement measures in accordance with the law against several Philippine vessels engaged in illegal activities around in China's jurisdiction.

Meanwhile, the Philippines has put out a statement describing a series of water cannon attacks and dangerous maneuvers, "Despite illegal, coercive, aggressive and deceptive actions, all Philippine personnel are safe."

Nobody's come to an agreement here. The dispute continues. It's gone on for years, and the fears are, it could just get worse.

MICHAELSON: Yes, I mean, thankfully, everybody is OK. But -- but you could see how tensions could ramp up quickly. And one miscommunication could lead to some real problems. Ivan Watson really amazing. Thank you for taking us out there.

WATSON: And I'll just add, Elex.

MICHAELSON: Yes.

WATSON: Yes. I'll just add the tensions reduced when this ship turned around, moved away from Scarborough Shoal, and started heading back to the Philippines.

They say they're aborting. They're cutting their mission short because of an approaching storm. So, we're hoping to get to land before that storm hits us.

MICHAELSON: All right. Well, great reporting, and a special shout-out to your photographer, as well, for doing all that on a boat and staying up straight as the -- as the boat moves around. We appreciate it.

Ivan Watson for us in the South China Sea.

WATSON: And not getting seasick.

MICHAELSON: Yes. Well done.

President Trump adds a new condition to the nuclear deal with Saudi Arabia. And now the agreement's future is really anybody's guess, just a day after it was signed.

We've got some expert analysis on what's really going on in Saudi Arabia now.

Plus, this.

(BEGIN VIDEO CLIP)

JIM SCIUTTO, CNN ANCHOR/CORRESPONDENT: Eielson Air Force Base is first to respond to any air incursions by Russian or Chinese aircraft.

(END VIDEO CLIP)

MICHAELSON: CNN's Jim Sciutto in Alaska to see how U.S. and Canadian forces are working together in the air, despite the insults and politics on the ground.

We're literally taking you all around the world here on CNN. Stay with us.

(COMMERCIAL BREAK)

[00:18:56] MICHAELSON: The White House is making a major about-face on a nuclear deal with Saudi Arabia.

On Thursday, President Trump said that the deal is off unless the kingdom normalizes diplomatic ties with Israel. That announcement, coming less than 24 hours after the agreement was signed without that condition.

The White House didn't fully explain why the requirement was not included in the first place. But it said Israeli Prime Minister Benjamin Netanyahu, who strongly opposes any such deal, did not request the change.

For more, we're joined live in Washington by CNN senior political reporter Stephen Collinson. He wrote an op-ed on CNN.com right now, arguing that the nuclear deal is a perfect metaphor for the Trump presidency.

Stephen, welcome back to the show. From CNN's reporting, why did President Trump announce this new stipulation regarding the Abraham Accords?

STEPHEN COLLINSON, CNN SENIOR POLITICAL REPORTER: So, Elex, as soon as this deal was announced that it had been signed on Wednesday, there was a chorus of disapproval from conservative media and from many of Israels friends in the U.S. Congress about the fact that, first of all, this deal was taking place, which some in Israel fear could lead to a regional nuclear arms race.

[00:20:12]

But secondly, because it didn't include this stipulation that the Saudis should be asked to join the Abraham Accords, that first-term Trump agreement with some mainly Muslim nations, which involved them recognizing Israel and opening normalized relations with Israel.

And apparently, according to CNN's reporting tonight, the president was angered by this. And that was what caused this about-face.

And there seems to have been some miscommunication, at least the White House says, with the Energy Department. The Energy Department is playing that down.

But I think what's important here is that, now this stipulation that Saudi Arabia should join the Abraham Accords is in place, first of all, this was something which the Biden administration had been trying to get from the Saudis when it was talking about a nuclear deal.

So, therefore, it was, in effect, getting a better deal from the president. And now that it's in place with the Trump administration, it basically puts the deal on hold.

Because the Saudis have said that they will not normalize relations with Israel until there is a movement towards a Palestinian state. And it's pretty clear that that is not happening any time soon.

MICHAELSON: Not as long as Benjamin Netanyahu is -- is running Israel.

Meanwhile, your op-ed is really about this concept that President Trump is perhaps the biggest risk taker we've seen of any president in modern times.

And I'm curious, reading it, even when he's lost his bets, and he loses, he acts like he's won. And that's sort of how --

COLLINSON: Yes.

MICHAELSON: -- he's handled himself for 40-plus years. Is the Iran war challenging that premise, that -- that folks in Trump's orbit may lose, but Trump keeps winning? Is that -- is that challenging that?

COLLINSON: Yes. And it's absolutely endemic to President Trump's image that he is the ultimate winner. He's built himself a cabinet of loyalists whose main job, it seems a lot of the time, is to praise the -- the president for this continual winning streak.

I think the Iran war is a very interesting scenario. One of the president's great skills has been to create narratives into which enough voters can buy. For example, his false claims that the 2020 election was stolen from him after his first term.

The problem with Iran is, is that while the administration, in its stepped-up efforts this week, keeps saying that this is a great military victory, that the -- the -- that America won the war within a few days of it, starting back in February.

That clearly isn't the case. There's a massive gap between the rhetoric and reality.

Gas, as you were saying earlier, is up to -- or oil is up to $100 a barrel. All the economic impacts of the closure of the Strait of Hormuz are beginning to ramp up again.

So, everyone can see that this war hasn't been a great success. I think there is a parallel, actually, to Trump's first term, where he

tried to create the narrative that the COVID-19 pandemic was going to be short-term; that the government's management of it was unparalleled; and it was a huge victory for his administration.

But everybody could see that that wasn't the case.

And I think in both of these cases, and to some extent with the economy --

MICHAELSON: Yes.

COLLINSON: -- during the affordability crisis, the president says, we have a golden age, but that is clearly not taking place.

So, I think there are a few occasions where the president's signature method starts to run out of room when reality starts to send a different message.

MICHAELSON: Of course, because of that COVID response, that was part of the reason that he lost his reelection bid. And yet, the president says that he didn't. And a lot of his voters believe that he didn't. So, sometimes, he is able to create that own reality.

We'll see if he's able to do it once again here. According to the polls recently, it doesn't look like it.

Stephen Collinson joining us. Thanks for staying up late for us. Always great to talk with you.

COLLINSON: Thanks.

MICHAELSON: A U.S. far-right activist who's been downplaying Ukraine's struggle in the war with Russia, has had a face-to-face sit-down with President Zelenskyy.

Trump ally Laura Loomer interviewed him at his official residence in Kyiv on Thursday. She said no questions were off-limits, and she did not pull any punches.

[00:25:02]

Loomer recently went to Ukraine and saw firsthand the reality of Russia's brutal aggression. That led her to make a U-turn this week, saying she should not have what Ukrainians are going through.

In the interview, Mr. Zelenskyy spoke about the moment when he believes his relationship with the U.S. president changed.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT: You arrived at the tone has changed. Absolutely. We had forced life-changing moment in Rome, in Vatican. Yes. It was not long meeting, but I always said that it's, I think, historic moment, because we -- we changed the relations during 15, 20 minutes. I'm so happy, because a lot of lives depends on such, relations and

dialogue.

LAURA LOOMER, FAR-RIGHT ACTIVIST: Is what happened, because it seems like the relationship has greatly improved?

(END VIDEO CLIP)

MICHAELSON: As President Trump escalates his trade war on Canada. CNN went to NORAD bases in Anchorage and Fairbanks, Alaska, where U.S. and Canadian forces are joined at the hip in protecting both nations from threats and adversaries.

So, how do they view the ongoing spat between U.S. And Canadian leaders? CNN's Jim Sciutto went to find out in this exclusive report.

(BEGIN VIDEOTAPE)

SCIUTTO (voice-over): While the U.S. and Canada trade tariffs and insults on the ground --

DONALD TRUMP, U.S. PRESIDENT: What I'd like to see: Canada become our 51st state.

MARK CARNEY, CANADIAN PRIME MINISTER: The -- Canada doesn't live because of the United States.

SCIUTTO (voice-over): In the air, they still fly side by side. NORAD, the North American Aerospace Defense Command, is the first line of defense for both the U.S. and Canada against aircraft and missiles from Russia, China, North Korea, and beyond.

SCIUTTO: Tell me how important and how that -- how that partnership works.

COL. MICHAEL MULLEN, FORMER DEPUTY COMMANDER, U.S. AIR FORCE 354TH FIGHTER WING: That partnership is fantastic, right? So, if you look at as we go to work in protecting the, really Alaska, the Pacific region, really our Northern hemisphere.

You saw that map again. If you look down at the top of the world where the arctic is, and everything gets out there.

So, we are working constantly together with our Canadian allies. We really can't do this homeland defense piece for the arctic region without our two nations working in collaboration with each other.

SCIUTTO (voice-over): Here, everything is a combined effort. Joint mission, joint commands, and joint sorties, often scrambling to intercept Russian and Chinese aircraft testing North American airspace.

And those flybys can be close and dangerous, like this one involving a Russian fighter jet in 2024.

LT. COL. NATHAN MONDUL, FORMER SQUADRON COMMANDER, U.S. AIR FORCE 18TH FIGHTER INTERCEPTOR SQUADRON: That was one of my pilots. I'd say, I don't know who that Russian pilot was, but I'm sure that they probably got some -- some talking to when they got back to their base. I would hope they did.

SCIUTTO: Eielson Air Force Base is first to respond to any air incursions by Russian or Chinese aircraft. And it's home not just to F-16s, but also state-of-the-art F-35s.

SCIUTTO (voice-over): Inside NORAD's operations center, the wall is decorated with stars, marking each intercept of a Russian or Chinese aircraft, and that list is growing.

Since January 2025, U.S. fighter aircraft have conducted some two dozen intercepts in the Alaska Air Defense Identification Zone, where U.S. And Canadian fighters respond to any threats in the air.

SCIUTTO: What is the operation tempo up here lately?

BRIGADIER GENERAL MARK LACHAPELLE, CANADIAN AIR FORCE: Yes, the operation tempo has been pretty heavy. I've lost count, to be frank and honest. But we do it, and it helps us demonstrate our ability to -- to defend our -- our theater and operate in the environment which -- which we know Alaska is challenging.

SCIUTTO (voice-over): It's a challenge U.S. and Canadian commanders still make clear they can only meet together.

LT. COL. JONATHAN BIENKUSH, ALASKA AIR NATIONAL GUARD: Absolutely essential here, not just from Alaska being, you know, a lot of common interest with -- with Canada, but from a mission partner perspective, showing that combined effort, defense of the homeland of -- of North America, keeping integrated on that is absolutely essential for us.

SCIUTTO (voice-over): Jim Sciutto, CNN, Eielson Air Force Base, Alaska.

(END VIDEOTAPE)

MICHAELSON: Our thanks to Jim for that.

Coming up, we continue to follow that breaking news. President Trump just unleashing a new round of tariffs that went in place about 28 minutes ago. We'll talk with our panel about why he won't let the tariff issue go, and some new polling that signals some trouble for Republicans. Melanie Mason, Bob Shrum, standing by live, next.

(COMMERCIAL BREAK)

[00:34:16]

MICHAELSON: Welcome back to THE STORY IS. I'm Elex Michaelson. Let's take a look at today's top stories.

Iranian state media reports that the latest wave of U.S. strikes have killed at least four people. The U.S. military says it has wrapped up the 13th consecutive night of

strikes against Iran and says American forces hit military command centers, drone storage facilities, and coastal surveillance sites, among other targets.

Three people in President Trump's inner circle will not attend the rescheduled White House Correspondents Dinner. First lady Melania Trump, Vice President J.D. Vance, Secretary of State Marco Rubio are not available for the Friday night gala due to scheduling conflicts.

The dinner was postponed in April after a gunman opened fire in a hallway of the hotel hosting the annual event.

New tariffs, U.S. tariffs on 60 countries now in effect. Goods shipped to the United States are now facing levies of 10 to 12.5 percent.

This is President Trump's latest workaround, after the Supreme Court rejected his most aggressive tariffs policy back in February.

Let's get this into -- this and more with our panel. Melanie Mason is Politico's California bureau chief, author of "The California Politico playbook. And Bob Shrum is the director of the USC Center for the Political Future. He helped elect 26 Democrats to the Senate and worked on multiple presidential campaigns in the U.S. and around the world.

Welcome to you both. Quite the resume, Bob.

BOB SHRUM, DEMOCRATIC STRATEGIST: Glad to be here.

MICHAELSON: Great to have you. And let's talk about the tariffs. This is something that Donald Trump, Melanie, has been talking about for decades, well before he was president. And it seems like he just can't give it up.

MELANIE MASON, CALIFORNIA BUREAU CHIEF, "POLITICO": Nothing is going to shake him from tariffs. I mean, this has been one of the few consistent policies that he has embraced for his entire term. And as you said well before that.

And I think a lot of Republicans maybe secretly thought that the Supreme Court might have done him a favor by ruling that those were -- those tariffs were invalid.

And yet, here he goes again, still trying to pursue this policy in the face of what I think are some real concerns about what that does in terms of prices and the affordability crisis.

MICHAELSON: Yes. I mean, what's the politics of this?

SHRUM: It's idiotic. to put it bluntly. No one was talking about tariffs. He could have walked away from this clean.

Instead, he's -- he's putting on these tariffs. It's going to add to inflationary pressures. It's going to raise questions about affordability to an even higher level. And it makes no sense. You just -- presidents don't do this. You know, most presidents say,

you know, we're headed into a midterm. What -- what can I do to make it possible for my party to do fairly well?

And the reason he gave -- and this will be my last point -- about slave labor is ridiculous. I mean, there's no slave labor in Britain. There's no slave labor in Australia. They're not importing slave-labor goods.

This will go to court. But he's hoping that they'll let the courts will let it stay in effect while it's litigated until it is conceivably struck down. By the way, he's also -- he's =-

MICHAELSON: You said last point.

SHRUM: I know, but I just -- what is this doing to him? He's 11 points behind in the generic ballot in the Emerson poll and seven points behind in the FOX News poll, which is the biggest margin in a generic vote in 30 years.

MICHAELSON: And let's talk about that -- that FOX News poll, because they asked folks in terms of which party do you -- would you prefer on the following issues.

On income inequality, Democrats plus 22. On health care, Democrats plus 21 on inflation, Democrats plus ten, the economy, Democrats, plus nine foreign policy Democrats, plus seven.

Only on crime, Republicans are plus seven. Those are scary numbers if you are a Republican member of the House or Senate.

And yet, Republicans still have a very good shot at keeping the Senate, at least. And, you know, are competitive, potentially, for the House.

MASON: Well, look, I mean, we knew going into this that this election cycle, at least in the Senate, that the map would be more favorable towards Republicans.

I think the fact that the Senate even feels like it's in play, I think, is reflective of the fact of how much public opinion has shifted towards the Democrats.

But it's still a highly polarized, very partisan country. I don't think you're ever going to see one party or the other feel like they're walking away with it.

The fact that the Democrats, who really got their -- their butts handed to them in 2024 over economic issues -- are now having double- digit leads over Republicans. I mean, that is such a stark reversal. And it absolutely is giving heartburn to congressional leaders on the Republican side.

SHRUM: And it's not exactly, Bob, like the Democratic messaging is so unbelievable or even so clear. Like what exactly the Democrats want to do. It's just that they're not the Republicans. SHRUM: Well, and that was what Trump did in '24. Melanie was talking

about it. That was a vote, a referendum on what people perceived as the inflationary impact of Biden's policies and Harris's policies. Remember, she famously said she didn't disagree with anything that he had done.

MICHAELSON: Right.

SHRUM: But what's happening here? And I just think I think Republican leaders in the Senate and the House have to be tearing their hair out. Yes, I know Republican consultants are because I talked to them and they -- they can't believe what he's doing.

I think he doesn't care --

MICHAELSON: Right.

SHRUM: -- all that much about what happens to the Republican Party. He only cares about what happens to a guy named Donald J. Trump.

MICHAELSON: Well, and of course, a Democratic majority in either the House or the Senate would have a lot of ability to investigate him and his family. And that may not be something he loves.

Meanwhile, as the campaigns progress around the country, we're seeing more and more A.I. implemented into campaigns.

[00:40:08]

Last night on the show, we had Steve Hilton, who's running for governor of California as a Republican. He previewed that there would be this big ad done by some folks who had done some free work for Spencer Pratt, that he's hired to do work for him.

This is an A.I.-generated ad that Steve Hilton has endorsed, and its reference to his opponent, Xavier Becerra. And you see some familiar faces from California. Of course, the A.I. versions of them. Watch.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Becerra, welcome. The machine picked you.

UNIDENTIFIED MALE: The machine?

UNIDENTIFIED MALE: The thing we created to make sure nothing ever changes. As long as you submit to the machine, you don't have to do anything.

UNIDENTIFIED MALE: Nothing? I can do that.

(END VIDEO CLIP)

MICHAELSON: So, I mean, this is changing politics around the country, Melanie.

MASON: I think that the A.I.-generated ads, we're going to be seeing this not just in California. I mean, we've already seen it in the Texas Senate race, for example. I mean, I do think that this is the new future.

But I also think that the Pratt mayoral campaign in the primary is -- both speaks to the sort of upside and the downside of these types of ads.

I mean, the upside is that they get a lot of attention. And here we are on CNN talking about them. And for very little investment, there is a lot of return.

But I also think that there was a warning sign in the Pratt campaign that he was almost speaking to an echo chamber on social media. The people who were seeing it were the people who already liked him. A lot of them didn't live in Los Angeles, so they couldn't vote for him.

And so, I do think that there's a question of if content like this is actually reaching voters who are going to decide the election.

MICHAELSON: And Bob, you have made so many political ads over the years and paid a lot of money to do so in terms of messaging for different candidates. What do you -- how do you see this in terms of a game changer?

SHRUM: It's an unstoppable revolution. It's going to go on and on. I don't think that iteration of it is going to be particularly effective.

People know that we have a homeless problem. There's a lot of -- of Governor Newsom in there. Governor Newsom, as far as I'm aware, is not on the ballot.

In fact, if you watch that whole ad, there's more Newsom than there is Becerra in the ad.

MICHAELSON: Yes, I think -- yes.

SHRUM: I recognize that you've got to cover this guy. He's going to do about as well as Spencer Pratt did.

MICHAELSON: Of course, his point is that Xavier Becerra would be a continuation of Governor Newsom. Governor Newsom, way more famous. So that's, I think, why he's trying to do that.

SHRUM: Newsom is somewhere around 50 percent favorable, which in this state is a pretty good rating for governor.

MICHAELSON: Yes. But not in that echo chamber that maybe like the Spencer Pratt ads.

SHRUM: Yes, yes.

MICHAELSON: So, Melanie Mason, Bob Shrum, you're coming back in the next hour to talk about more big news that's happening tonight. So, we'll see you in a little bit. Also, just ahead, the FDA peptides debate. Critics say they have not

been proven safe or effective, but some doctors and wellness influencers say they're a health booster.

(BEGIN VIDEO CLIP)

ROBERT F. KENNEDY JR., HEALTH AND HUMAN SERVICES SECRETARY: I'm a big fan of peptides. I've used them myself.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[00:47:39]

(BEGIN VIDEO CLIP)

TRUMP: You have to be kidding, huh? Wow. Do I have to report this? I don't want to report this. That's beautiful. Thank you very much.

UNIDENTIFIED MALE: It's got your name on it.

TRUMP: That's right. That's really good.

(END VIDEO CLIP)

MICHAELSON: Fresh off another World Series championship, the Los Angeles Dodgers visited the White House Thursday to celebrate their latest title.

The team presented the president with a replica World Series ring and a Dodgers jersey with the number 47 on the back.

The Dodgers have won three World Series titles since 2020, including back-to-back championships in 2024 and 2025.

The U.S. Food and Drug Administration is holding a two-day meeting outside -- of outside advisers to decide whether compounding pharmacies should be allowed to dispense certain peptides.

The outside advisers narrowly voted on Thursday in favor of loosening restrictions on some peptides that had been banned and will vote on three more on Friday.

CNN's Dr. Sanjay Gupta has more.

(BEGIN VIDEOTAPE)

KENNEDY: I'm a big fan of peptides. I've used them myself.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Robert F. Kennedy Jr., President Trump's health secretary, is embracing peptides. And he isn't alone. The global market is projected to more than double by 2030.

UNIDENTIFIED MALE: Peptides. You want to know more about peptides? Look at my stash.

UNIDENTIFIED FEMALE: If you're curious about peptides but have no idea where to start, then this one is for you.

GUPTA (voice-over): Let's start with the basics. Our bodies have 20 fundamental amino acids. When they combine in short chains, they form peptides. For instance, this one is KPV.

UNIDENTIFIED MALE: Let's talk about KPV.

UNIDENTIFIED FEMALE: KPV, the queen of anti-inflammation.

UNIDENTIFIED FEMALE: KPV. Day three.

GUPTA (voice-over): Peptides help regulate different functions in the body, and synthetic versions are promising everything from building muscle to more youthful skin.

In the United States, some peptides are approved by the Food and Drug Administration, like insulin and semaglutide. That's the peptide in Ozempic.

But many more are not FDA-approved, and they have not been proven safe or effective. Including this list of 17 peptides. Until recently, people could still get these through compounding pharmacies, which made them from raw ingredients.

[00:50:05]

But three years ago, the FDA banned them, citing significant safety concerns, including the risk of life-threatening allergic reactions.

But that hardly made a dent in the demand. Peptides that were banned by the FDA were still widely bought and used, mostly through unregulated markets. They skirted the rules by labeling the peptides "for research use only."

And now, Secretary Kennedy wants to lift that ban.

KENNEDY: Compounding pharmacies were getting those peptides from FDA- inspected facilities, and some of them in India and China. But they were the same one that the pharmaceutical industries are buying them. And we inspect those.

So, you know you're getting a good product. You know you're getting what you bought, what you -- what was advertised. With the gray market, you have no idea.

GUPTA (voice-over): This week, an FDA advisory panel is discussing reversing the ban on seven peptides. That's even after an agency review already said the evidence does not justify letting pharmacies make any of them. Kennedy, he disagrees.

KENNEDY (via phone): You look for a safety signal, and if there is one, then you move it. But if there's not one, then you don't.

GUPTA (voice-over): Critics warn that would essentially reverse decades of how we approve drugs in the United States.

GUPTA: So, in many ways, this is a story about peptides, but also about how the FDA is going to handle situations like this going forward.

Again, keep in mind, an advisory committee met a couple years ago and decided not to approve these peptides. They said there were concerns about safety, potentially life-threatening concerns.

And now there's a new committee, a committee that is made up largely of people who prescribe peptides, who promote peptides, who produce peptides. And now, they're the ones who are going to be making these recommendations about peptides.

Look, supporters will say people are taking the peptides anyway. That hasn't changed. Let's try and make them as safe as possible. Take them off this unregulated market and allow compounding pharmacies to make them here in the United States.

Critics will say, look, again, there's no data here, and there are significant safety concerns.

(END VIDEOTAPE)

MICHAELSON: Dr. Sanjay Gupta reporting earlier. Next hour. I'll speak live to another doctor who specializes in weight loss about the health impact of peptides.

But coming up next, a Cuban dissident is now free after spending years in prison. Still to come, we'll hear what this artist and human rights advocate thinks the future holds for his homeland, now that he's living in exile.

(COMMERCIAL BREAK)

[00:57:1`9]

MICHAELSON: After being locked away in prison for five years, Cuban dissident Luis Manuel Otero Alcantara is now a free man living in exile in the U.S.

CNN's Carolina Peguero asked him what he thinks lies ahead after leaving his homeland.

(BEGIN VIDEOTAPE)

CAROLINA PEGUERO, CNN CORRESPONDENT (voice-over): Holding a statue of Cuba's revered patron saint, we meet Cuban dissident Luis Manuel Otero Alcantara, fresh out of a Cuban prison and now standing free on the shores of Miami. Close yet still so far from the island, he says he's still adapting to a new life.

PEGUERO: I asked him, as he was looking towards the horizon, what are the three emotions and feelings that come to his mind and his heart? And he said, one, his son, Alejandrito (ph); two, automatic confusion; and three, slowly accepting his new reality.

PEGUERO (voice-over): And while he's free, he says the mission to push for change on the island is ongoing.

LUIS MANUEL OTERO ALCANTARA, FREED CUBAN DISSIDENT:(SPEAKING FOREIGN LANGUAGE)

GRAPHIC: I came here looking for a new horizon to try and change Cuba.

PEGUERO (voice-over): He arrived in Miami on July 18th after nearly five years in a Cuban prison and being granted humanitarian parole by the Trump administration.

A fierce critic of Cuba's censorship and government; a Latin Grammy Award winner for the song "Patria Vida" and co-founder of the San Isidro movement, Otero Alcantara had been behind bars since 2021, when the Cuban government launched a sweeping crackdown following the historic anti-government protests.

ALCANTARA: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: I remember being happy when I was being detained. I was in the police car with a policeman, another woman, and a young officer. Over the radio, I heard, "There are 10,000 protestors coming from one side, and more from another."

The officers were asking each other, "What do we do?"

PEGUERO (voice-over): For Miami's Cuban exile community, he's become a symbol of resistance, our conversation interrupted several times by supporters who want a picture with him.

He also has critics, but Otero Alcantara says he will continue to speak out against the Cuban regime.

ALCANTARA: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: If there is something I've said many times, it's that I will not waste any time, because a lost minute is one more minute of dictatorship. I am going to work hard.

PEGUERO (voice-over): As Cuba continues to grapple with an ongoing energy crisis intensified by U.S. oil blockade on fuel shipments, Otero Alcantara hopes change in the island comes soon.

ALCANTARA: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: Five years and protests tied to those [from 2021] still happen. The people are learning, and there will be a happy ending.

PEGUERO (voice-over): Carolina Peguero, CNN, Miami.

(END VIDEOTAPE)

PEGUERO (voice-over): Thanks. Thanks for watching The first hour of THE STORY IS. the next hour starts right now.